When it comes to insurance, information is a very powerful commodity. For insurers, it is not only important to ensure that all possible information is gathered when pricing policies, it is also imperative to control the flow of information to the public. Demand for transparency is on the rise in New York, where insurance prices have been soaring recently. The state’s insurance companies have been tight lipped on why rates are growing so quickly, but these companies may soon divulge this knowledge to the general public, thanks to pressure from the Financial Services Superintendent, Benjamin Lawsky.
UnitedHealth Group, the largest insurance company in the state, has reached an agreement with Lawsky and will begin disclosing data that is used to price insurance policies. Lawsky has been working to get this information to the public for some time, especially as the insurer is required to present the data by federal law. Lawsky notes that consumers deserve to know why their insurance rates are on the rise.
Insurance companies throughout the nation are required to submit information regarding rate increases as required by the federal Affordable Care Act. The law aims to bring transparency to the insurance industry and give consumers a better understand of why they are paying more for health care. Insurers have been resistant to the law, however, claiming that such information is somewhat sensitive and can potentially harm their business. Despite these concerns, however, regulators are beginning to enforce the law throughout the U.S.